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Castellum, Inc. (CTM)·Q2 2025 Earnings Summary

Executive Summary

  • Record Q2 2025 revenue of $14.024M (+19.7% q/q, +21.7% y/y), improving operating performance, and record quarter-end cash of $14.7M; management highlighted continued organic growth and deleveraging focus .
  • Operating loss narrowed to $(0.384)M vs $(1.1)M in Q1 2025 and $(6.0)M in Q2 2024, reflecting cost discipline and operating leverage; Adjusted EBITDA was $0.500M excluding non-cash/one-time items .
  • Total debt reduced by $3.7M in the quarter, strengthening balance sheet flexibility and capital discipline .
  • Catalysts: execution on the five-and-a-half-year NAVAIR PMA‑290 Special Missions MOSS task order ($103.3M) awarded to GTMR in Feb-2025 and ongoing federal contract momentum .

What Went Well and What Went Wrong

What Went Well

  • Record quarterly revenue with second consecutive quarter of y/y organic growth, a milestone since 2022 uplisting .
  • Significant operating improvement: operating loss narrowed to $(0.4)M, with positive Adjusted EBITDA of $0.500M after excluding non-cash/one-time items .
  • Balance sheet progress: total debt reduced by $3.7M and cash reached a record $14.7M, enhancing liquidity and flexibility .
    • Quote (CEO): “In addition to record revenue and solid margin improvement, we reduced our debt by $3.7 million this quarter - a major achievement in strengthening our financial foundation.”

What Went Wrong

  • GAAP profitability remained negative with net loss of $(322,107), indicating further progress needed to reach sustained GAAP profitability .
  • Continued reliance on non-GAAP adjustments (e.g., stock-based compensation of $511,814, depreciation and amortization $372,026) to demonstrate underlying operating performance .
  • No formal quantitative guidance provided for revenue, margins, or EPS, limiting visibility into H2 2025 trajectory .

Financial Results

Headline Financials vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$11.522M $11.700M $14.024M
Diluted EPS - Continuing Ops ($)-$0.0328 -$0.0148 -$0.0040
Operating Income ($USD)-$1.570M -$1.101M -$0.384M
Cash and Equivalents ($USD)N/A$13.290M $14.730M
Total Debt ($USD)N/A$9.153M*$5.378M*

Values marked with * retrieved from S&P Global.

Key Performance Indicators (Q2 2025)

KPIQ2 2025
Adjusted EBITDA ($USD)$0.500M
Gross Profit ($USD)$5.060M
Gross Margin (%)36.1% (calculated from $5.060M/$14.024M)
Debt Reduction ($USD)$3.7M q/q
Cash ($USD)$14.730M

Estimates vs Actuals (S&P Global)

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD)$13.449M*$14.024M*
Primary EPS ($)-$0.02*$0.00644*
# of Estimates (Revenue)1*—
# of Estimates (EPS)1*—

Values retrieved from S&P Global.

Note: Primary EPS (S&P Global) may differ from GAAP Diluted EPS – Continuing Operations reported in filings. Company reported net loss for Q2 2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q3 2025None providedNone providedMaintained (no formal guidance)
Margins (Gross/Operating)FY/Q3 2025None providedNone providedMaintained (no formal guidance)
OpEx / SBCFY/Q3 2025None providedNone providedMaintained (no formal guidance)
Tax RateFY/Q3 2025None providedNone providedMaintained (no formal guidance)
Segment-specificFY/Q3 2025None providedNone providedMaintained (no formal guidance)
DividendsFY/Q3 2025None providedNone providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document system or via public searches.

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
Defense contracts / NAVAIR PMA‑290Announced $103.3M PMA‑290 Special Missions MOSS task order win for GTMR Contract began execution, described as strategic win contributing to 2025 performance Ongoing execution implied; revenue momentum continues Positive, sustained
Organic revenue growth2024 revenue $44.8M; set up for 2025 growth First y/y organic growth as listed company Second consecutive quarter of y/y organic growth Improving
Profitability / marginsOperating loss $(7.2)M in 2024; Adjusted EBITDA $0.85M Operating loss $(1.1)M Operating loss $(0.4)M; Adjusted EBITDA $0.5M Improving
Balance sheet / liquidityCash $12.3M; debt $10.7M YE2024 Record cash $13.3M Record cash $14.7M; debt reduced by $3.7M Strengthening
Macro / federal budget riskForward-looking risk of CRs/shutdowns/sequestration Similar forward-looking risk disclosures Similar forward-looking risk disclosures Unchanged

Management Commentary

  • “In addition to record revenue and solid margin improvement, we reduced our debt by $3.7 million this quarter - a major achievement in strengthening our financial foundation.” — Glen Ives, CEO .
  • “Posting our first year-over-year organic revenue growth is a milestone for Castellum. It reflects stronger execution, increased customer confidence, and a more focused approach to delivering results.” — Glen Ives, CEO, on Q1 momentum and contract execution .
  • On PMA‑290 MOSS: “This award represents the largest contract win in Castellum’s history… With our leading-edge technology services and solutions, we will support the program maturation and integration of electronic warfare and special missions capabilities.” — Glen Ives, CEO .

Q&A Highlights

No published Q2 2025 earnings call transcript or Q&A was found in the document system or via public sources, so there are no available Q&A highlights for this quarter.

Estimates Context

  • Q2 2025 revenue of $14.024M exceeded the S&P Global consensus of $13.449M (1 estimate), a beat of ~$0.575M or ~4.3%; Primary EPS of $0.00644 beat the consensus of -$0.02 (1 estimate).
  • Given limited estimate coverage (single estimate for both revenue and EPS), models may need to reflect stronger top-line trajectory and operating leverage observed in Q1–Q2 2025 and ongoing contract execution (e.g., PMA‑290 MOSS) .

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Top-line momentum is accelerating: second consecutive quarter of organic y/y growth and record revenue suggest improved demand and contract execution .
  • Operating performance inflecting: narrowing operating losses and positive Adjusted EBITDA point to cost discipline and maturing operating leverage .
  • Balance sheet de-risking: $3.7M q/q debt reduction and record cash provide flexibility for execution and potential future investments .
  • Contract pipeline execution: PMA‑290 MOSS ($103.3M over 5.5 years) supports medium-term visibility and should underpin revenue growth into H2 2025 and beyond .
  • Estimates may be stale/thin: with only one analyst estimate recorded, expect updates to reflect stronger revenue and better-than-expected EPS; monitor for formal guidance in 10‑Q and future communications .
  • Near-term trading setup: positive revenue/EBITDA beats and balance sheet progress are supportive; lack of formal guidance and GAAP net loss remain watchpoints for sustained rerating .

Citations: Q2 2025 press release and 8-K Items ; Q1 2025 press release and 8-K Items ; 2024 unaudited results and PMA‑290 award 8-K Items .